Missouri court rejects challenge to land tax credits

JEFFERSON CITY, Mo. (AP) -- The Missouri Supreme Court has rejected a challenge to a law granting millions of dollars of tax credits to a developer wanting to transform part of north St. Louis.

The Supreme Court cited a couple different reasons Tuesday while ruling against two St. Louis residents who had claimed the tax credits amount to an unconstitutional granting of public money to a private entity.

Three of the court's seven judges wrote that tax credits are not an expenditure of public money and the residents thus did not have legal standing to sue as taxpayers.

Three other judges said they believe tax credits are an expenditure of public money, and the residents could sue as taxpayers. But they said the tax credits should be upheld as benefiting a public purpose.